Home / Energy / U.S. crude oil stocks build on strong output despite import drop – EIA

U.S. crude oil stocks build on strong output despite import drop – EIA

NEW YORK – U.S. crude oil inventories rose for a sixth straight week as domestic production increased, outweighing a drop in imports to the lowest level since 1991, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose 2.8 million barrels in the week to Oct. 30, in line with analysts’ expectations in a Reuters poll.

U.S. crude imports fell last week by 89,000 barrels per day to 6.4 million bpd, the lowest since 1991.

Crude production rose 48,000 bpd to 9.16 million bpd, the highest level since Oct. 2.

“The part of the report that continues to amaze is the domestic production number, which showed a small rise, despite the ever-plunging rig count,” said John Kilduff, partner at New York hedge fund Again Capital.

Oil services company Baker Hughes Inc said drillers removed 16 oil rigs in the week ended Oct. 30, bringing the total rig count down to 578, the least since June 2010.

U.S. oil prices, already down about 1 percent before the EIA report, extended losses after the data and were down more than 3 percent, or $1.45, at $46.45 a barrel by 11:22 a.m. EST (1522 GMT).

Crude stocks at the Cushing, Oklahoma, delivery hub for U.S crude futures fell 212,000 barrels, EIA said.

Refinery crude runs rose 21,000 bpd as refinery utilization rates rose by 1.1 percentage points to 88.7 percent of capacity.

In related news, Oil down on large U.S. crude stockpile build.

This article was from Reuters and was legally licensed through the NewsCred publisher network.

One comment